NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- The strong employment/low inflation playbook, and
- Jamie Dimon's health scare.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
No Use Working Against the Odds
Posted at 11:10 a.m. EST on Thursday, July 3, 2014
There are playbooks in this business the way there are playbooks in the NFL. When you are third and inches, you just might want to run the ball. When you are third and 10, you just might want to pass it.
When you get a strong employment number with low inflation, you just might want to own consumer cyclicals with good leverage from top-line growth. You might want to sell some of the strong utilities that don't have a lot of growth.
Now, you can pass on third and inches. There might be a big opening for a 10-year run when you are third and nine. Sometimes you can catch the defense off-guard. But the playbook says you shouldn't do it because the percentages are against you.
My recommendations today are to sell some of the fixed income that so many are in, including the junk bonds, and to move into some equities that have exposure to broad economic growth or an expansion of net interest margin -- e.g., the banks. These recommendations are based on that exact same kind of reasoning.